Insights

Industry events / 10 June 2016

Transparency and cybersecurity regulation on the agenda at PERE Forum

transparency

Entitled ‘CFOs and COOs Forum 2016’ the conference attracted senior operations and finance executives from a number of real estate private equity managers.

The main conference covered a wide range of topics but the recurring messages were associated with the oversight role of the SEC, the fundamental role of technology, cybersecurity and the increased focus by investors on transparency. The conference concluded with a session focused on how to retain good staff and the particularities of the millennial cohort.

The panel session ‘Doing business in Europe’, which embraced both the US and European markets, was moderated by Christopher Bennett.  DLA partner Victor Levy provided commentary from a legal perspective and the panel’s industry experts discussed issues to take into account when raising foreign capital. Specifically, Andrew Yoon, Partner & Chief Operating Officer of GreenOak discussed the use of a Luxembourg parallel fund with a third party AIFM and distribution with the EU passport while John Bottomley, Managing Director Client Relations at Berkshire Group, described the use of private placement regimes to market in individual countries.  A wider discussion followed on the practical and legal aspects of doing business in Europe.

One of the questions the discussion prompted was the control implications for GPs of appointing a third party AIFM and not taking back a delegation of the portfolio management.

“Where the AIFM retained both risk and portfolio management, and therefore operated the AIFM’s investment committee, its control was negative by way of a veto right. Third party AIFMs control neither the fund nor the fund’s holding companies meaning that these, and therefore all assets, remain under the control of the fund board”, Christopher noted.

The Forum took place over two days in May and included contributions from leading legal and financial real estate practitioners and compliance professionals in New York.